The Top 5 Financial Mistakes GE Employees Made in 2025
By Matt Held, CFP®
The year 2025 was the first full year of GE Aerospace’s independent operations post-split. GE Aerospace’s stock surged in 2025, but many employees made financial mistakes. They either fell into tax traps created by the SECURE 2.0 Act or missed out on stealth opportunities for building wealth.
If you’re like many of the GE employees I’ve worked with in the past, you may not even be aware of financial missteps. Let’s take a look at five of the most common financial mistakes GE employees made in 2025.
1. Forgetting About the Super Catch-Up and SECURE 2.0
In 2022, the SECURE 2.0 Act was passed to make it easier for Americans to save for retirement. The law introduced the “super catch-up” provision, which allowed employees ages 60 to 63 to contribute an extra $11,250 to their retirement plans.
This is significantly higher than the standard catch-up provision, which allows employees age 50 and over to contribute an extra $7,500.
The problem? Many employees forgot about the super catch-up or weren’t aware of it. This was one of the most common financial mistakes.
However, eligible employees who wish to take advantage of the super catch-up in 2026 need to know that SECURE 2.0 mandates that all catch-up contributions for those who earned more than $145,000 in 2025 must be designated as Roth (after-tax) 401k contributions, and therefore will no longer receive the same tax deductibility enjoyed in 2025.
For those who earned less than $145,000, they have the option of designating their catch-up contributions (and super catch-up) as regular tax-deductible or Roth after-tax ones.
2. Not Making After-Tax Contributions
For 401(k)s in 2025, the maximum amount of money you can contribute pre-tax, known as the standard elective deferral limit, is $23,500.
One of the main financial mistakes I notice is forgetting that this isn’t the most you can contribute overall. Once you contribute $23,500 pre-tax, you can also make post-tax contributions (up to a total of $70,000), plus any catch-ups you’re eligible for.
3. Not Taking Advantage of the Mega Backdoor Roth Conversion
The mega backdoor Roth conversion strategy is ideal for high earners. It involves contributing after-tax dollars to your 401(k) and then rolling the funds into a Roth account. For GE employees, one of the most common financial mistakes is making the after-tax contribution and then forgetting about the Roth conversion.
When you do this, you let after-tax money sit in a non-Roth bucket and accumulate taxable growth. Fortunately, there’s an easy fix: setting up automatic conversions or planning periodic manual conversions.
4. Falling Into the 22% Withholding Trap
For employees, one of the most common financial mistakes is neglecting the restricted stock unit (RSU) tax gap.
RSUs are withheld at a standard rate of 22% for federal taxes, but most executives are in the 32%, 35%, or 37% marginal brackets. If you fall into one of those brackets and spend your RSU proceeds without setting aside 10% to 15%, you may face unexpected tax penalties.
5. Getting Complacent With Stock Options
If you’ve been paying attention to GE stock options over the past decade, you may have made one of the common financial mistakes among GE employees. Over the past 10 years, GE stock options have expired almost worthless.
Now that GE Aerospace is a separate entity, it’s trading at much higher volumes. Many employees didn’t plan a multiyear exercise strategy or just let options expire as they had for the past 10 years.
Avoid Financial Mistakes in 2026
Do any of these financial mistakes sound familiar? If so, don’t be discouraged. You aren’t the first employee to make them, and you won’t be the last. At Clarity Wealth Management, we take you through our six-step Clear Path Process™ to plan your financial future and put your money to work for you.
Interested in a no-obligation, icebreaker call? Schedule online here, call (513) 278-9420, or email Info@ClarityWealth.org.
Frequently Asked Questions
What are the most common financial mistakes GE employees make?
Some of the most common financial mistakes GE employees make include missing enhanced retirement contribution opportunities under SECURE 2.0, under-withholding taxes on RSUs, forgetting to convert after-tax 401(k) contributions to Roth accounts, and letting stock options expire without a long-term exercise strategy. These mistakes often happen because compensation is complex and changes quickly, especially after corporate restructuring.
How can GE employees avoid costly financial mistakes with stock compensation?
Avoiding financial mistakes with stock compensation starts with understanding how RSUs, stock options, and after-tax 401(k) contributions affect taxes and cash flow. Many GE employees underestimate tax exposure or fail to coordinate equity decisions with their broader plan. At Clarity Wealth Management, we help GE employees align stock compensation, tax planning, and retirement goals so equity becomes a tool for building wealth rather than a source of surprises.
Is it too late to fix financial mistakes from last year?
In many cases, no. While some tax deadlines are firm, there are often ways to course-correct through better withholding, adjusted contribution strategies, Roth conversions, or updated stock option plans. A proactive review can help identify which financial mistakes still matter and which can be mitigated going forward. Working with an advisor who understands GE benefits and SECURE 2.0 rules can help prevent small oversights from turning into long-term setbacks.
About Matt
Matt Held, CFP®, is the lead advisor and a founding partner of Clarity Wealth Management, a boutique firm based in Cincinnati, OH. Since entering the industry in 2006, Matt has helped corporate executives, professionals, and business owners uncover opportunities and build long-term financial strategies. Driven by a desire to control his own future and create a lasting brand, Matt co-founded Clarity Wealth Management in 2012. His mission was to build a firm that would provide truly personalized guidance—and become a legacy for his own family. Today, Clarity serves about 100 households and focuses on helping clients simplify and navigate complex financial decisions, particularly those involving equity compensation, tax planning, and executive retirement.
Matt’s approach is rooted in trust, loyalty, and hard work. As a CERTIFIED FINANCIAL PLANNER® professional, he is deeply committed to long-term relationships and believes that clarity doesn’t mean predicting the future, but having the confidence that your plan can handle whatever comes your way.
Outside of work, Matt enjoys time with his wife, Abby, and their twins, Henry and Kinsley. Whether it’s watching sports (they love their Ohio State Buckeyes), hitting the slopes out West, or squeezing in a workout, he’s passionate about staying active and present. He’s also a proud graduate of Moeller High School and The Ohio State University. Matt holds Series 7 and 66 licenses, is licensed for health insurance, and earned his CFP® certification in 2012. He has been named a Five Star Wealth Manager in the Cincinnati area since 2013.* To learn more about Matt, connect with him on LinkedIn.
Clarity Wealth Management is located at 4243 Hunt Road, STE 429 Cincinnati, OH 45242. (513) 278-9420
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth. Clarity Wealth Management is neither endorsed by or affiliated with GE or GE Aerospace.
*2013-2018 and 2020-2024 Five Star Wealth Manager Award, created by Five Star Professional. The 2024 award was presented in September 2024 based on data gathered within 12 months preceding the issue date. Advisors pay a fee to hold out marketing materials. Not indicative of advisor’s future performance. Your experience may vary. For more information, please visit www.fivestarprofessional.com.